The future of Israel's real estate market appears uncertain, according to Dr. Avihai Shanir from Bar Ilan University. Speaking at a Real Estate Center conference, he expressed doubts about a rapid market recovery in the coming year, citing a lack of clear economic policy and challenges associated with reducing interest rates.
Nadav Barih, CEO of Be Nadlan, highlights a buildup of deferred purchase requests, despite clients' ability and willingness to buy. Shanir's historical analysis compares the current impact to past conflicts like the Yom Kippur War, emphasizing varied effects on economic growth, inflation, and defense budget.
Shanir predicts post-conflict scenarios, considering security stability and the global economic situation. He identifies household income and interest rates as key factors influencing the real estate market. Despite current economic challenges, including a high public deficit and a high-interest rate environment, he remains skeptical about a significant reduction in rates in the near future.
According to Barih, while the real estate market can experience rapid changes, developers are gearing up for larger campaigns. He notes growing interest in central and near-peripheral areas, considered safer. Barih also anticipates an increase in demand in these areas, contrasting with the previous trend favoring distant peripheries.
Barih advises marketing professionals to adapt their strategies to the new reality and shift to a more consultative sales approach. He emphasizes the importance of attracting long-term non-resident investors, despite a limited influx in the short term.
